The following data for Keefe Company pertain to the production of 500 units of Product X during December. Selected data items are omitted. Standard cost per unit ⚫ Direct Materials - 4 units of material A x $3.00 per unit - 1 unit of material B x $4.00 per unit Direct Labor - 3 hours x $9.00 per hour Activity for September Materials purchased 。Material A - 4,500 units x $3.10 per unit Material B - 1,100 units x $4.15 per unit Materials used Material A - 4,150 units Material B - 1,005 units Direct labor used - 2,950 hours x $9.40 per hour Production output - 1,000 units There were no beginning direct materials inventories. a. Determine the materials price and quantity variances. b. Determine the labor rate and efficiency variances.
The following data for Keefe Company pertain to the production of 500 units of Product X during December. Selected data items are omitted. Standard cost per unit ⚫ Direct Materials - 4 units of material A x $3.00 per unit - 1 unit of material B x $4.00 per unit Direct Labor - 3 hours x $9.00 per hour Activity for September Materials purchased 。Material A - 4,500 units x $3.10 per unit Material B - 1,100 units x $4.15 per unit Materials used Material A - 4,150 units Material B - 1,005 units Direct labor used - 2,950 hours x $9.40 per hour Production output - 1,000 units There were no beginning direct materials inventories. a. Determine the materials price and quantity variances. b. Determine the labor rate and efficiency variances.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The following data for Keefe Company pertain to the production of 500 units
of Product X during December. Selected data items are omitted.
Standard cost per unit
⚫ Direct Materials - 4 units of material A x $3.00 per unit
- 1 unit of material B x $4.00 per unit
Direct Labor - 3 hours x $9.00 per hour
Activity for September
Materials purchased
。Material A - 4,500 units x $3.10 per unit
Material B - 1,100 units x $4.15 per unit
Materials used
Material A - 4,150 units
Material B - 1,005 units
Direct labor used - 2,950 hours x $9.40 per hour
Production output - 1,000 units
There were no beginning direct materials inventories.
a. Determine the materials price and quantity variances.
b. Determine the labor rate and efficiency variances.
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